What Is the Percentage Change in a 10-Year Zero-Coupon Bond

question 72

Multiple Choice

What is the percentage change in a 10-year zero-coupon bond with a duration of 10 years,when interest rates increase from 3% to 4%?

• A)-9.2%
• B)-10%
• C)-9.8%
• D)-10.4%
• E)-8.7%

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Definitions:

Brain

The organ located in the skull that coordinates and controls activities of the nervous system, including thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

Polarized

Polarized is a term used to describe a situation, opinion, or group that is divided into two extreme positions, with no apparent middle ground.

Neural Membrane

The lipid bilayer that encloses the cytoplasm of neurons, essential for conducting electrical impulses.

Ions

Atoms or molecules that have gained or lost one or more of their electrons, resulting in a net electric charge.